XRP remained stable as Ripple unlocked its regular monthly tokens. Shorts with targets below $0.60 could be liquidated.
In two separate transactions, Ripple [XRP] made its first regular unlock of 1 billion tokens in 2024. According to details from Whale Alert, a first set of 500,000,000 tokens were unlocked from escrow. Minutes later, another 500,000,000 tokens left the Ripple wallet.
Another Year, Another Unlock
Recently, the total value of unlocked tokens was $611.42 million. For the uninitiated, Ripple unlocks these tokens as a strategy to stabilize the price of XRP.
However, the latest unlock is different from those carried out by other projects. This is because the blockchain payments company re-locks them in escrow to keep circulation under control.
Ripple could complete the token unlocking mechanism in April or May 2027. But how did XRP react to the event this time? According to CoinMarketCap, XRP was able to maintain $0.61.
This value was roughly the same as the price of XRP seven days ago, implying that volatility around the cryptocurrency was low. This was also confirmed by the Relative Strength Index (RSI).
The contraction of the bands also indicated that the XRP price fluctuation could be minimal. However, the lower BB band touched XRP at $0.61.
This suggested that XRP was recently oversold. If buying pressure appears, $0.61 could be the level from which XRP reverses higher. Meanwhile, the Relative Strength Index (RSI) showed that buying momentum was resuming.
Bulls Need to Deploy Capital
At the beginning of the day, the RSI reading was 44.93. But XRP would need the RSI to rise above the 50.00 midpoint to confirm the reversal. If this happens, then XRP could be on its way to hitting $0.65.
Meanwhile, Cumulative Liquidation Level Delta (CLLD) had traders shorting Ripple’s native token but with medium leverage.
The CCLS is the sum of the difference between all long settlement levels and all short settlement levels within a given period.
Positive CLLD values indicate longer settlements. Negative values, on the other hand, suggest more short liquidations. AMBCrypto also evaluated the liquidation levels.
According to a chart presented by Hyblock Capital, traders with positions targeting prices below $0.60 could face liquidation. As things stand, XRP could continue to consolidate until Ripple’s next unlock in February.
However, a rise above $0.65 could be on the cards depending on the accumulation gained.
Three Events to Consider Regarding the Price of XRP
XRP On-Chain Metrics Rising: XRP saw a record number of transactions lately, and the average transactions per ledger also hit new highs.
Growth in XRP Wallets: The number of XRP wallets has increased significantly, indicating a larger user base and potentially increasing investor confidence.
Stable XRP Prices Amid Market Optimism: The price of XRP has remained stable, fluctuating between $0.60 and $0.65. The overall bullish sentiment in the cryptocurrency market, especially with the recent rise of Bitcoin, could influence future price movements of XRP.
XRP Price Prediction
According to CryptoPredictions, XRP started January 2024 at $0.00587384 and is forecast to end the month at $0.69022948677151. During January, the expected high price of XRP is $1.002 and the low is $0.00587384.
XRP price for today (02.01.2024) is forecast to be in the price range of $0.52876476996101 – $0.77759524994267. XRP price is expected to end at $0.62207619995413 today.
Tomorrow, XRP is forecast to start at $0.60341391395551 and end the day at $0.58531149653684.
By Audy Castaneda
